Barclays and Standard Bank drop McKinsey

JOHANNESBURG – Barclays Africa and Standard Bank on Monday confirmed that they would stop working with McKinsey & Company with immediate effect.

 

This follows allegations of bribery that McKinsey, the world’s largest management consultancy, face in relation to President Jacob Zuma, Eskom and the Gupta family.

 

The two bank strongholds say they will not continue working with any company that is not credible for fear that their reputation will be tainted.

 

McKinsey has rejected any bribery allegations but only regrets to have signed a R1.6 billion ($113 million) contract with Eskom last year, alongside a company controlled by the Gupta family.

 

The Gupta family, allegedly wealthy friends of Jacob Zuma, has been accused of unduly influencing government contracts to further their own selfish needs at the expense of millions of South Africans.

 

Although investigations are underway, South Africa’s parliamentary committee believes McKinsey knowingly let funds provided by Eskom last year be diverted to Gupta-controlled firm, as a way of securing the deal.

 

Corruption Watch, a South African anti-graft NGO, said it is doing everything in its power to persuade the U.S. Department of Justice to investigate McKinsey’s dealings with Trillian.

 

McKinsey & Company says it never did anything wrong and that the allegations are just meant to taint their image as an organisation.

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